Moody’s turns Seqens outlook to negative

Moody’s Investors Service said it revised its outlook for Sirona HoldCo (Seqens) and Sirona BidCo France to negative from stable and affirmed its ratings including the B3 ratings on the company and its €930 million senior secured term loan and the €130 million senior secured revolving credit facility, both due 2028.

“The outlook is negative and reflects execution risks, excess intra-year leverage and an uncertain EBITDA recovery path,” the agency said in a press release.

Furthermore, “Moody's could downgrade the ratings if Seqens fails to achieve an improvement in operating performance such that credit metrics remain strained (including, but not limited to, EBITDA to interest expense falling below 1.5x; debt/EBITDA remaining above 7x); the company does not generate positive FCF over the next 12-18 months; or the company's liquidity position worsens.”

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